Former Healthcare Conglomerate Associates CEO Yorai “Benny” Benzeevi, 62, has been convicted in a historic public corruption case that spanned six years.

On Thursday, Tulare County Judge Michael Sheltzer ordered Benzeevi to pay $2.4 million in restitution, which was paid in full to the Tulare Local Health Care District ($2 million) and the Southern Inyo Health Care District ( $400,000), two years of probation, time served in custody. , and 600 hours of community service, which were completed.

The case revolves around HCCA’s controversial management of Tulare Regional Medical Center from 2013-2017, which resulted in patient deaths, a failed bond measure, a half-built tower, board members recalled, unpaid employees, hospital closure and bankruptcy. Finally, in 2018, Adventist Health took over the public hospital in Tulare.

Benzeevi previously pleaded no contest to six felonies and two misdemeanors. Counts include:

• Criminal conflict of interest (contract related to funding process)

• Felony Conflict of Interest (Related to the Tulare/Southern Inyo Line of Credit)

• Criminal conflict of interest (relating to Benzeevi’s loans to Southern Inyo)

• Criminal conflict of interest (relating to HCCA loans and promissory notes to Tulare Hospital)

• Criminal conflict of interest (related to Celtic leasing transaction)

• Criminal conflict of interest (related to deed of trust filed against Tulare Hospital District)

• Misdemeanor failure to timely disclose campaign expenditures

• Offense of using an official position for personal gain (related to the refusal to recognize the former member of the board of directors of the hospital)

When a defendant enters a no contest plea, they agree to accept the court’s sentence without admitting guilt.

“The cornerstone of this conviction is the payment of $2.4 million in restitution,” District Attorney Tim Ward said following the February plea. “A major objective has been to do everything we can to financially restore the losses caused by the defendant while the defendant acknowledges responsibility.”

Although the victims in the case were paid in full, Ward said the impact on the city of Tulare cannot be forgotten. He asked Sheltzer to send the doctor to prison.

“We cannot forget the human and deeply personal impact that the defendant’s actions had on the community,” Ward said Thursday. “Although we pleaded for time in custody, we respect today’s court decisions. We now look forward to focusing our efforts on the remaining defendant in this case.”

Ward said the case was the most expensive prosecution in his office.

“Operating a Third World Hospital”

During Thursday’s sentencing, victim impact statements were read in front of Benzeevi.

“It cannot be overlooked that physical harm was done to patients – in some cases leading to the ultimate sacrifice of death,” Dr. Patricia Drilling-Phelps said in her letter. “There were victims who suffered and died. Let that sink in for a moment. They died because of greed and the need for power, putting profit over people.”

Drilling went on to say that under Benzeevi the hospital had inadequate supplies, faulty equipment, a lack of infection control and deterioration throughout the hospital. She said these problems arose “because money was collected rather than put back into the hospital”.

“HCCA promoted first-world financial success while operating a third-world hospital,” she said. “From a moral point of view, these were intentionally cruel, negligent and inhumane acts.”

Benzeevi faced up to 40 years in prison on his criminal charges. When charges were filed in 2020, the district attorney’s office estimated that Benzeevi could have been ordered to pay up to $20 million in restitution to the hospital district if convicted of all charges.

It is unclear how the plea will affect Benzeevi’s medical license. According to the Medical Board of California, Benzeevi’s medical license is valid until 2025 and he is based in Sherman Oaks.

The fall of the HCCA

In 2020, Benzeevi, hospital CFO Alan Germany, and HCCA attorney Bruce Greene were charged with more than 80 combined felonies, including grand theft, conspiracy, money laundering and multiple counts of embezzlement by public officials.

“The defendants allegedly used control of public hospital entities to enrich themselves through the misuse of private and taxpayer loans and other public integrity crimes,” the Tulare County District Attorney’s Office wrote in a 2020 news release announcing the accusations.

In 2020, Ward estimated that prosecutors spent $1.5 million in staff hours and overtime, travel and related costs during the 13,500 hours of investigation.

That total does not include court time since the charges were filed. A series of lawyers for the trio fought with the prosecutor’s office frozen bank accounts, conflicts of interest with the Tulare County District Attorneyand defense attorney billing issues as the case dragged on for more than three years.

This article originally appeared on the Visalia Times-Delta: HCCA CEO who bankrupted Tulare hospital skips prison, Benny Benzeevi pays